News Release:October 4, 2000

October 4, 2000

FOR IMMEDIATE RELEASE

NTT Communications Purchases Additional Stake in HKNet

NTT Communications (NTT Com) has purchased additional shares in HKNet Company Limited (HKNet) from CCT Telecom Holdings Limited (CCT), in accordance with an earlier agreement reached by the two firms. In addition, NTT Com and CCT purchased newly issued shares from HKNet. As a result, NTT Com’s stake in HKNet rose from 49% to 79%, and CCT’s stake decreased from 51% to 21%. CCT continues to be a partner of HKNet.

NTT Com’s additional investment will enable HKNet to expedite the expansion of its IP business. This will be accomplished by combining HKNet’s competitive edge in providing Internet solutions, such as Digital Business Data Center, with NTT Com’s global foothold in the IP field. Our valued customers in Hong Kong will also benefit from worldwide access to various IP services now offered by NTT Com as a result of its acquisition of Verio that is the world largest Web Hosting company. Among NTT Com’s group companies, HKNet is expected to play a more important role as a core IP company in the Asia-Pacific region and as a gateway to the Greater China market.

1. Service Plan

-	Value-added IP network services, including global connectivity, network management, and IP-VPN
-	Total outsourcing services, such as Web hosting, co-location, and other services, by leveraging Digital Business Data Center
-	High quality e-commerce platform services
-	Full spectrum of IP services, ranging from broadband access to IP backbone service

2. Share Purchase Agreement

-	Parties	:	NTT Com, CCT
-	Conditions	:	NTT Com's 26% purchase of HKNet's outstanding shares from CCT, totaling HK$125 million
-	No. of Directors	:	NTT Com (4), CCT (1)

3. Share Subscription Agreement

-	Parties	:	HKNet, NTT Com, CCT
-	Conditions	:	Acquisition of HK$142 million worth of new shares by NTT Com and CCT 1. Acquisition by NTTCom: HK$130 million 2. Acquisition by CCT: HK$12 million

4. Comments from relevant parties:

Mr. Masanobu Suzuki, President & CEO of NTT Communications:
“We are very pleased to complete the deal. We believe HKNet can make another step in the fastest growing and expanding Internet world, supported by the synergy among HKNet, NTT Com and Verio, which we recently acquired in the United States.”

Mr. Clement Mak, Chairman of CCT Telecom:
“Overall, we are satisfied with this deal. Subsequent to our acquisition of HKNet in 1998, HKNet’s development has accelerated rapidly. HKNet has since become the second-largest ISP and one of the leading web solutions providers in Hong Kong. NTT Communications’ increased investment will lead HKNet to another milestone in its development.”

Mr. Haruo Ikeda, new Managing Director of HKNet:
“As a result of our closer relationship with NTT Group companies, I believe HKNet will be the Asia-Pacific region's most aggressive Internet service provider. We will provide reliable, high-quality Internet access and world class data center services to our clients, thereby distinguishing ourselves in an extremely competitive market. I will do my best to achieve this goal and to create and provide our customers with the best global services.

5. About NTT Communications

NTT Communications Corporation (NTT Com), a Tokyo-based subsidiary of Nippon Telegraph and Telephone Corporation, provides long distance and international telecommunications reaching over 200 countries worldwide. In conjunction with Verio Inc., a US based subsidiary wholly owned by NTT Com, the NTT Com group ranks among the top IP service providers globally. The group provides customers of all sizes in the U.S., Japan, and throughout Asia with a complete range of Internet-based business services - from high-quality IP network services including global connectivity, network management and IP-VPN, to advanced Web-based business solutions.
NTT Com’s Arcstar global services operating in about 50 countries also provide managed data, multimedia, and Internet services to some of the largest companies in the world.
For more information about NTT Com, visit the company's Web site at www.ntt.com/index-e.html.

6.About CCT

CCT Telecom Holdings Limited (SEHK: 138) is principally engaged in telecommunication services, broadband content provider service, and the manufacture and distribution of telecom-related products. CCT Telecom consists of five core businesses, including CCT Technology Group, CCT Comm Group, HKNet Group, CCT Multimedia and CCT Ventures.

For more information about CCT, visit the company's Web site at http://www.cct.com.hk

7. About HKNet

Established in 1994, HKNet Co. Ltd. is one of the first licensed Internet Service Providers (ISP) in Hong Kong. Determined to provide the most reliable and effective e-telecom service in Hong Kong, HKNet focuses on broadband service, Data Center, Web Solutions/System Integration, Telecom Services, and Domain-Name-Registration.

In April 2000, HKNet was named "The Best Site of the Year" and "The Best Portal" at the Hong Kong Web Awards 2000 organized by Webmaster (Hong Kong) Association and Commercial Radio. HKNet is a joint venture of CCT Telecom Group, which is listed on the Hong Kong stock exchange (SEHK: 138), and NTT Communications Corporation of Japan.

For more information about HKNet, visit the company's Web site at http://www.hknet.com

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